Govt may raise oil imports by 25% next year

ISLAMABAD—The government may increase its oil imports by 25 per cent in its 2005-06 fiscal year, sources said.
The sources said that increased demand for oil in the country was due to the country's high economic growth.
Pakistan State Oil (PSO), the nation's top oil marketing firm, is expected to import up to 1 million tones of fuel oil in the year to July 2006, up from 800,000 tones in the previous financial year, a company source said. ''We have alternative sources of power generation like hydro-electric power but with weather and climate conditions being unpredictable, fuel oil powered plants remain the most reliable means of power generation in the country,'' the source said.
Pakistan usually imports two monthly fuel oil cargoes, each of around 55,000 tones. Traders who frequently participate in PSO import tenders said they would not be surprised to see its import an additional 2-3 cargoes more each month until July.
''They have invested and planned for alternative power generation projects, which haven't quite been successful, and that is why they continue to rely heavily on fuel oil for power generation needs,'' a senior oil trader said. In its most recent tender for September-October delivery, PSO sought to import a total of four cargoes totaling 220,000 tones of high sulphur fuel oil. The state oil company is believed to have purchased a total of three cargoes totaling 190,000 tones.—INP